GMP Capital Trust today reported net income increased to $27.7 million for the second quarter (48¢ per unit), up 9% from pro forma net income of $25.5 million in the second quarter of 2005.

GMP said the increase reflected strong results in GMP Securities and growth in GMP Private Client.

The annualized return on unitholders’ equity (ROE) was 54% for the second quarter compared with pro forma ROE of 59% in the second quarter last year.

Revenue was $78.8 million for the second quarter, an increase of 23% from the second quarter of 2005,

“We are pleased to report strong results for the second quarter and record performance for the first half of the year,” said Kevin Sullivan, CEO, in a news release.

“These results were achieved despite the recent softening in the Canadian equity markets, which resulted in strong decreases in both trading volumes and financing activity for the industry as a whole. After quarter end, we acquired EdgeStone, one of Canada’s leading private equity firms. We believe this partnership will assist us in continuing to build and enhance our brand awareness with our target client base.”

At GMP Securities, revenue was $73.3 million, up 17% from $62.8 million in Q2 2005, reflecting strong sales and trading results and solid performance in investment banking

At GMP Private Client. revenue was $5.8 million, GMP Private Client’s best quarter since its inception in Q2 2005.

Assets under administration were $2.4 billion, as at June 30, 2006.